Hezbollah fighters walk near a military tank in Western Qalamoun, Syria, Aug. 23, 2017. Photo: REUTERS/Omar Sanadiki

Iraq will remove Lebanon’s Hezbollah and Yemen’s Houthis from an asset–freeze list, officials said on Thursday, after the Iran-backed Islamist groups were mistakenly included in an earlier government publication, prompting confusion and criticism.

The Justice Ministry’s official gazette last month published a list of groups and entities whose funds would be blocked, naming both terrorist groups, a move that would likely have been welcomed in Washington and increased pressure on Tehran.

The US and several other countries around the world have designated both Hezbollah and the Houthis as terrorist organizations.

A letter from the acting deputy governor of the Central Bank asked the Committee for the Freezing of Terrorists’ Funds to delete the clause containing the names, two bank sources told Reuters.

Prime Minister Mohammed Shia al-Sudani said Iraq had approved freezing only the assets of entities and individuals linked to Islamic State and al Qaeda jihadists, in response to a request from Malaysia.

‘HOLD ACCOUNTABLE THOSE RESPONSIBLE’

He said he had ordered an urgent investigation into the mistake “to hold accountable those responsible.”

Sudani added that Iraq‘s political and humanitarian positions on “the aggression on our people in Lebanon or in Palestine” were “principled and not subject to exaggeration.”

Hussain Mouanes, a lawmaker representing a bloc affiliated with Iraq‘s Kataeb Hezbollah, criticized the government on Thursday for what he called “irresponsible” conduct.

He accused the government of being a “subordinate authority that lacks the dignity to represent its people or defend Iraq‘s sovereignty.”

The Iraqi committee said the Nov. 17 publication had been intended to cover only individuals and entities linked to Islamic State and al Qaeda, in line with UN Security Council Resolution 1373.

Several unrelated groups were included because the list was released before final revisions were completed, it said, adding that the corrected version would appear in the official gazette.

Hezbollah and the Houthis did not immediately respond to requests for comment.

US DRIVE TO CURB IRANIAN INFLUENCE

The United States has long sought to reduce Iran’s influence in Iraq and other countries in the Middle East where Tehran has allies as part of its so-called Axis of Resistance, which has taken a battering by Israel since the war in Gaza erupted in 2023.

Iran views its neighbor and ally Iraq as vital to keeping its economy afloat amidst international sanctions. But Baghdad, a partner to both the US and Iran, is wary of being caught in the crosshairs of US President Donald Trump’s policy to squeeze Tehran.

The Islamic Republic wields hefty military, political, and economic influence in Iraq through its powerful Shi’ite militias and the political parties it backs in Baghdad. But Iran has been weakened over the past year by Israel’s heavy blows to Tehran’s militia proxies, raising its susceptibility to US pressure.